Lawrence and Melinda Bivens purchased a 78-year-old six-unit apartment build ing five years ago. The Bivens are considering selling their investment property. They do not live in the six-unit building because, as Melinda says, "We can't stand living with those people."

George, a local broker, is asked to prepare a competitive market analysis (CMA) for the Bivens. The Bivens explains to George that a broker named Harriet is their property manager.

George meets with the Bivens and presents the CMA, along with a complete expla nation of all of the many services George offers.

Melinda says, "This is all very well and good, but we want to make sure the right person buys our building."

George questions her statement "By 1 right person,.' I assume you mean someone

who is qualified to obtain a mortgage and provide a down payment?"

Melinda says: "Whatever. We just don't want 'those people' taking over this building."

George continues his presentation and ultimately obtains a six-month listing at a competitive price. George calls the property manager the next week. Harriet says that the Bivens have given her explicit instructions not to show apartments to for eigners because such people offend the Bivens.

This statement concerns George, who asks, "You mean you actually don't show apartments to foreigners?"

Harriet replies, "Well, it's not as bad as it sounds. Everyone knows foreigners don't work as hard and don't make as much money. They wouldn't qualify for one of our apartments, anyway."

George continues questioning Harriet and finds out that she also does not give prospective tenants the HUD-mandated lead-based paint pamphlet because "it's not that big a deal as long as they don't have children."

1.Should George has accepted the listing? George states, "I am not discriminating. The owners are the guilty party." Can George filter potential buyers by credit score? By race?

2.Now that George has accepted the listing, could he be guilty of fair housing violations by association? Could he be innocent because he is only "following orders?

3.Is Harriet guilty of fair housing violations? Which ones? Is George obligated to report Harriet to the state licensing agency? To HUD?

4.George is employed by Millennium Realty. His sponsoring broke1; Ted, has not been informed of the circumstances behind George's listing. What is the extent of Ted's liability if the state and HUD rule that George is guilty of discrimination and license law violations? To what extent might professional liability insurance provide coverage for George? For Ted?

5.If George tells Ted about the Bivens and Harriet, does this change Ted's over all liability?

6.What actions should Ted take to limit his liability? Should Ted have a writ ten policy and procedures manual in the office? What should the manual say about issues similar to the ones facing George?

7.Did George or Harriet violate confidentiality when they discussed the Biv ens' situation? Should either George or Harriet have obtained permission from the Bivens beforehand?